(Translation of the original in Portuguese)

(Translation of the original in Portuguese) THE REGISTRATION WITH CVM DOES NOT IMPLY ANY EVALUATION OF THE COMPANY AND ITS MANAGERS ARE RESPONSIBLE FOR THE VERACITY OF THE INFORMATION PROVIDED. 01.01 IDENTIFICATION 1 CVM CODE 2 REGISTERED NAME 3 CGC General Taxpayers Registration 4 REGISTRATION NUMBER NIRE 86.094 01.02 HEAD OFFICE 1 FULL ADDRESS 2 SUBURB OR DISTRICT AV. JOÃO XXXIII, 6777 STA. CRUZ 3 ZIP CODE 4 MUNICIPALITY 5 STATE 23568-900 RIO DE JANEIRO RJ 6 AREA CODE 7 TELEPHONE 8 - TELEPHONE 9 TELEPHONE 10 TELEX 21 414-6000 - - 23423 11 AREA CODE 12 FAX 13 - FAX 14 FAX 21 414-6243 - - 15 - E-MAIL 01.03 DIRECTOR OF MARKET RELATIONS (Address for correspondence with Company) 1 NAME FREDERICO CARLOS GERDAU JOHANNPETER 2 FULL ADDRESS 3 SUBURB OR DISTRICT AV. FARRAPOS, 1811 FLORESTA 4 ZIP CODE 5 MUNICIPALITY 6 STATE 90220-005 PORTO ALEGRE RS 7 AREA CODE 8 TELEPHONE 9 - TELEPHONE 10 TELEPHONE 11 TELEX 51 323-2000 - - 1337 12 AREA CODE 13 FAX 14 - FAX 15 FAX 51 323-2286 - - 16 - E-MAIL inform@gerdau.com.br 01.04 QUARTERLY INFORMATION REFERENCE CURRENT YEAR CURRENT QUARTER PRIOR QUARTER 1 BEGINNING 2 END 3 QUARTER 4 - BEGINNING 5 - END 6 QUARTER 7 BEGINNING 8 -END 01.01.2000 12.31.2000 3 07.01.2000 09.30.2000 2 04.01.2000 06.30.2000 9 NAME OF AUDITOR 10 CVM CODE ARTHUR ANDERSEN S/C 00283-6 11 NAME OF RESPONSIBLE ACCOUNTANT 12 INDIVIDUAL TAXPAYER NUMBER OF RESPONSIBLE ACCOUNTANT CARLOS BIEDERMANN 220.349.270-87 Page 1

01.01 IDENTIFICATION (Translation of the original in Portuguese) 1 CVM CODE 2 REGISTERED NAME 3 CGC General Taxpayers Registration 01.09 SUBSCRIBED CAPITAL AND CHANGES DURING THE CURRENT YEAR 1 ITEM 2 DATE OF CHANGE 3 - CAPITAL AMOUNT (R$ thousand) 4 AMOUNT OF THE CHANGE (R$ thousand) 5 ORIGIN OF THE CHANGE 7 NUMBER OF SHARES ISSUED (THOUSAND) 8 PRICE OF SHARE UPON ISSUANCE (R$) 01 02.26.1999 1,316,881 1 Merger 29 0.0319364500 02 04.28.2000 1,320,133 3,252 Income reserve 0 0.0000000000 01.10 DIRECTOR OF MARKET RELATIONS 1 DATE 2 SIGNATURE Page 2

(Translation of the original in Portuguese) 01.01 IDENTIFICATION 1 CVM CODE 2 REGISTERED NAME 3 CGC General Taxpayers Registration 01.05 COMPOSITION OF CAPITAL Number of Shares 1 CURRENT QUARTER 2 PRIOR QUARTER 3 SAME QUARTER OF THE PREVIOUS YEAR (Thousand) 09.30.2000 06.30.2000 09.30.1999 Paid-up Capital 1 Common 39,382,020 39,382,020 19,691,010 2 Preferred 74,109,686 74,109,686 37,054,843 3 Total 113,491,706 113,491,706 56,745,853 Treasury Stock 4 Common 0 0 0 5 Preferred 0 0 0 6 Total 0 0 0 01.06 CHARACTERISTICS OF THE COMPANY 1 TYPE OF COMPANY Commercial, industrial and other 2 SITUATION Operational 3 NATURE OF THE CONTROLLING INTEREST Local private 4 ACTIVITY CODE 1140200 Steel works 5 MAIN ACTIVITY STEEL WORKS 6 TYPE OF CONSOLIDATION Not presented 7 TYPE OF REPORT OF INDEPENDENT ACCOUNTANTS Unqualified 01.07 COMPANIES EXCLUDED FROM THE CONSOLIDATED FINANCIAL STATEMENTS 1 ITEM 2 CGC General Taxpayers Registration 3 REGISTERED NAME 01.08 DIVIDENDS APPROVED AND/OR PAID DURING AND AFTER THE QUARTER 1 ITEM 2 EVENT 3 APPROVAL DATE 4 DIVIDEND 5 DATE OF PAYMENT 01 RCA 06/26/2000 Interest on Capital 08/15/2000 02 RCA 06/26/2000 Interest on Capital 08/15/2000 6 TYPE OF SHARES Registered common Registered preferred 7 EARNINGS PER SHARE 0.0003730000 0.0004103000 Page 3

QUARTERLY INFORMATION - ITR Date -09.30.2000 Corporate Law 01.01 IDENTIFICATION 1 CVM CODE 2 REGISTERED NAME 3 CGC General Taxpayers Registration 02.01 BALANCE SHEET ASSETS (R$ thousand) 1 CODE 2 DESCRIPTION 3 9.30.2000 4 6.30.2000 1 Total assets 4,370,334 4,166,821 1.01 Current assets 1,046,158 932,760 1.01.01 Cash and cash equivalents 14,807 5,770 1.01.02 Receivables 538,281 427,726 1.01.02.01 Trade accounts receivable 397,285 362,056 1.01.02.03 Tax credits 14,821 11,358 1.01.02.05 Marketable securities 126,175 54,312 1.01.03 Inventories 444,999 448,799 1.01.03.01 Finished products 182,119 179,235 1.01.03.02 Work in process 78,331 93,197 1.01.03.03 Raw materials 67,224 68,943 1.01.03.04 Supplies 90,176 82,427 1.01.03.05 Advances to suppliers 27,149 24,997 1.01.04 Other 48,071 50,465 1.01.04.01 Other receivables 26,921 25,576 1.01.04.02 Deferred income and social contribution taxes 2,543 1,899 1.01.04.03 Advances to employees 18,607 22,990 1.02 Noncurrent assets 140,329 108,186 1.02.01 Sundry receivables 25,848 25,716 1.02.01.01 Debtors under contract 13,924 13,792 1.02.01.02 Eletrobrás loans 11,924 11,924 1.02.02 Receivables from related parties 30,645 0 1.02.02.01 Affiliated companies 0 0 1.02.02.02 Subsidiaries 30,645 0 1.02.02.03 Other related parties 0 0 1.02.03 Other 83,836 82,470 1.02.03.01 Escrow deposits and other 45,904 45,553 1.02.03.02 Deferred income and social contribution taxes 37,932 36,917 1.03 Permanent assets 3,183,847 3,125,875 1.03.01 Investments 1,544,298 1,495,130 1.03.01.01 Investments in affiliated companies 0 0 1.03.01.02 Investments in subsidiaries 1,531,390 1,482,205 1.03.01.03 Other investments 12,908 12,925 1.03.02 Property, plant and equipment 1,626,347 1,616,408 1.03.02.01 Land, buildings and construction 633,287 630,951 1.03.02.02 Machinery, equipment and installations 1,783,983 1,724,383 1.03.02.03 Furniture and fixtures 41,246 40,879 1.03.02.04 Vehicles 20,452 21,371 1.03.02.05 Electronic data processing equipment 127,960 125,760 1.03.02.06 Construction in progress 261,691 273,698 1.03.02.07 Forestation/reforestation 82,018 81,136 1.03.02.08 Accumulated depreciation (1.324,290) (1,281,770) 1.03.03 Deferred charges 13,202 14,337 Page 4

QUARTERLY INFORMATION - ITR Date -09.30.2000 Corporate Law 01.01 IDENTIFICATION 1 CVM CODE 2 REGISTERED NAME 3 CGC General Taxpayers Registration 02.02 BALANCE SHEET LIABILITIES AND STOCKHOLDERS EQUITY (R$ thousand) 1 CODE 2 DESCRIPTION 3 09.30.2000 4 06.30.2000 2 Total liabilities 4,370,334 4,166,821 2.01 Current liabilities 708,977 701,982 2.01.01 Loans and financing 439,930 439,299 2.01.02 Debentures 4,603 4,538 2.01.03 Trade accounts payable 96,021 82,452 2.01.04 Taxes and contributions 65,686 63,443 2.01.05 Dividends payable 33,859 40,244 2.01.06 Provisions 0 0 2.01.07 Payables to related parties 0 0 2.01.08 Other 68,878 72,006 2.01.08.01 Salaries payable 39,064 40,367 2.01.08.02 Deferred income and social contribution taxes 7,411 8,066 2.01.08.03 Statutory interest 1,749 2,990 2.01.08.04 Other payables 15,272 15,334 2.01.08.05 Creditors under contract 5,382 5,249 2.02 Long-term liabilities 1,348,175 1,220,995 2.02.01 Loans and financing 854,889 776,142 2.02.01.01 Local loans 309,079 240,570 2.02.01.02 Foreign loans 545,810 535,572 2.02.02 Debentures 245,117 157,500 2.02.03 Provisions 0 0 2.02.04 Payables to related parties 0 43,038 2.02.05 Other 248,169 244,315 2.02.05.01 Reserve for contingencies 157,616 153,580 2.02.05.02 Deferred income and social contribution taxes 31,370 32,798 2.02.05.03 Other payables 59,183 57,937 2.03 Deferred income 0 0 2.05 STOCKHOLDERS EQUITY 2,313,182 2,243,844 2.05.01 Capital 1,320,133 1,320,133 2.05.02 Capital reserves 211,926 204,473 2.05.02.01 Restatement of capital 314 314 2.05.02.02 Investment grants 165,627 159,351 2.05.02.03 Special reserve Law No. 8,200/91 21,487 21,487 2.05.02.04 Other 24,498 23,321 2.05.03 Revaluation reserves 0 0 2.05.03.01 Own assets 0 0 2.05.03.02 Subsidiaries/affiliated companies 0 0 2.05.04 Income reserves 556,116 556,116 2.05.04.01 Legal 44,560 44,560 2.05.04.02 Statutory 482,889 482,889 2.05.04.03 For contingencies 0 0 2.05.04.04 Unrealized profits 28,667 28,667 2.05.04.05 Retained profits 0 0 2.05.04.06 Special for undistributed dividends 0 0 2.05.04.07 Other income reserves 0 0 2.05.05 Retained earnings/accumulated deficit 225,007 163,122 Page 5

QUARTERLY INFORMATION - ITR Date 09.30.2000 Corporate Law 04.01 NOTES 0101.01 - IDENTIFICATION 1 CVM CODE 00398-0 2 REGISTERED NAME GERDAU S.A. 3 CGC General Taxpayers Registration 33.611.500/0001-19 03.01 STATEMENT OF INCOME (R$ thousand) 1 CODE 2 DESCRIPTION 3-07.01.2000 to 09.30.2000 4-01.01.2000 to 09.30.2000 5 07.01.1999 to 09.30.1999 6-01.01.1999 to 09.30.1999 3.01 Gross revenue 961,213 2,668,314 769,934 2,005,905 3.02 Deductions from gross revenue (212,646) (594,613) (171,492) (446,763) 3.02.01 Taxes on sales (182,589) (514,192) (147,566) (379,381) 3.02.02 Freights and discounts (30,057) (80,421) (23,926) (67,382) 3.03 Net revenue 748,567 2,073.701 598,442 1,559,142 3.04 Cost of products and/or services sold (512,178) (1,419,072) (376,466) (994,016) 3.05 Gross profit 236,389 654,629 221,976 565,126 3.06 Operating expenses/income (124,903) (297,045) (122,632) (308,859) 3.06.01 Selling (48,866) (127,991) (29,957) (80,871) 3.06.02 General and administrative (62,895) (174,611) (56,168) (147,979) 3.06.03 Financial (61,504) (144,355) (128,501) (387,465) 3.06.03.01 Financial income 8,388 29,333 14,657 72,610 3.06.03.02 Financial expenses (69,892) (173,688) (143,158) (460,075) 3.06.04 Other operating income 2,672 6,564 2,041 6,656 3.06.05 Other operating expenses 0 0 0 0 3.06.06 Equity in earnings of subsidiaries and affiliated companies 45,690 143,348 89,953 300,800 3.07 Income from operations 111,486 357,584 99,344 256,267 3.08 Nonoperating income (expenses) (57) (5,312) (1,086) (4,328) 3.08.01 Income 0 0 0 0 3.08.02 Expenses (57) (5,312) (1,086) (4,328) 3.09 Income before taxes / management s profit sharing 111,429 352,272 98,258 251,939 3.10 Provision for income and social contribution taxes (14,038) (52,756) (323) (394) 3.11 Deferred income tax 3,742 12,826 12,092 31,872 3.12 Management s profit sharing and statutory contributions (1,749) (4,739) (1,180) (3,410) 3.12.01 Management s profit sharing (1,749) (4,739) (1,180) (3,410) 3.12.02 Contributions 0 0 0 0 3.13 Reversal of interest on capital 0 0 0 0 3.15 Net income/loss 99,384 307,603 108,847 280,007 NUMBER OF SHARES, FORMERLY TREASURY STOCK 113,491,706 113,491,706 56,745,853 56,745,853 (thousand) EARNINGS PER SHARE 0,00088 0,00271 0,00192 0,00493 LOSS PER SHARE Page 6

QUARTERLY INFORMATION - ITR Date 09.30.2000 Corporate Law 04.01 NOTES NOTE 1 PRESENTATION OF FINANCIAL STATEMENTS The financial statements are presented in accordance with corporate law (Law No. 6,404/76, changed by articles 4 and 5 of Law No. 9,249/95) at historical values in accordance with CVM Instruction No. 248. NOTE 2 SIGNIFICANT ACCOUNTING PRACTICES a) Investments in subsidiaries are carried under the equity method. The result of the equity pick-up is recorded in income as an operating item. b) The classification of receivables and payables in current and noncurrent/long-term is in accordance with the realization term or maturity up to September 30, 2001, or after this date, respectively, under the terms of articles 179 and 180 of Law No. 6,404/76. c) The reserve for income and social contribution taxes was calculated in conformity with the legislation in force. Deferred income and social contribution taxes was determined based on CVM Resolution 273 of August 20, 1998. NOTE 3 DEFERRED CHARGES Deferred charges are composed of: - preoperating expenses on projects for the renovation of the steel mill; and - expenses on research and development and reorganization projects. Amortization is calculated on the straight-line basis on restated cost at rates determined based on the production of new units in relation to their installed capacities. NOTE 4 LOANS AND FINANCING Financing in local and foreign currency (principally U.S. dollar) is payable to October 15, 2011 and subject to the following charges: a) interest varying from 7.59% to 12.88% per year plus monetary restatement calculated based on the Brazilian Long-term Interest Rate - TJLP; b) annual interest of 0.5% to 6.38% above LIBOR in addition to exchange variation; and Page 6

QUARTERLY INFORMATION - ITR Date 09.30.2000 Corporate Law 04.01 NOTES c) annual interest of 5.56% to 11.32% in addition to exchange variation. Government Agency for Machinery and Equipment Financing FINAME loans are guaranteed by the assets, object of the financing, in statutory lien. The other financing are guaranteed by sureties of majority stockholders. The long-term portion of financing is paid as follows: R$ thousand 2001 218,557 2002 162,001 2003 79,429 2004 282,681 2005 34,773 2005 onward 77,448 Total 854,889 NOTE 5 - DEBENTURES Approved at the Annual Number Number Meeting Issued in portfolio Maturity 05.27.82 48,000 24,668 06.01.2011 06.10.83 42,000 42,000 02.28.2012 11.29.89 29,986-12.05.2005 07.14.82 22,800 21,899 07.01.2012 11.11.82 59,988 29,191 05.02.2013 06.10.83 41,880 10,482 09.01.2014 02.27.81 6,450 6,450 11.30.2015 06.29.90 50,000 41,264 06.01.2020 Page 7

QUARTERLY INFORMATION - ITR Date 09.30.2000 Corporate Law 04.01 NOTES NOTE 6 - CAPITAL On September 30, 2000 subscribed and paid-up capital of R$1,320,133 thousand is composed of 39,382,020,386 common shares and 74,109,685,986 preferred shares all without par value. NOTE 7 FINANCIAL INSTRUMENTS Temporary cash investments are recognized at their redemption value at the balance sheet date. The book value of other financial assets and liabilities substantially corresponds to its estimated market value. Loans with affiliated companies are restated at weighed average cost of funding in the financial market. Their maturity dates are undefined; however, they should be settled when there is available cash. The Company does not carry out transactions with derivatives nor has financial instruments which are not recognized in its balance sheet. NOTE 8 INCOME AND SOCIAL CONTRIBUTION TAXES In thousands of reais Assets Liabilities Current Long-term Current Long-term Deferred income tax 1,870 30,472 7,066 29,340 Deferred social contribution tax 673 7,460 345 2,030 The basis for the recognition of deferred taxes is the following: In thousands of reais Reserve for contingencies 121,887 Tax incentive to accelerated depreciation and other 153,102 Page 8

QUARTERLY INFORMATION - ITR Date 09.30.2000 Corporate Law 04.01 NOTES Reconciliation In thousands of reais Income before taxes and after profit sharing 347,533 Nominal rate 34% Income and social contribution taxes expenses at nominal rates (118,161) Effect of taxes on: - equity in earnings of subsidiaries and affiliated 48,738 companies - reduction of social contribution tax rate (1,083) - interest on capital 28,083 - permanent differences (net) 2,493 Income and social contribution taxes on income (39,930) Page 9

QUARTERLY INFORMATION - ITR Date 09.30.2000 Corporate Law 04.01 NOTES The current macroeconomic indicators, after another increase in inflationary rates, presented once more favorable signs of sustained growth in the Brazilian economy: inflation dropped again, and the industrial production continues growing, government accounts improve in search of a more consistent balance and the interest rates are lower. Within this context, Gerdau, especially as to its operations in Brazil, presented results aligned with the country s economy growth, as explained below. PRODUCTION In the nine months of 2000, Gerdau s production reached 5.3 million tons of crude steel and 4.4 million tons of rolled steel. These volumes represent increases of 56.6% and 52.3%, respectively, as compared to the same period of 1999. In Brazil, the production of crude steel came up to 3.3 million tons, 15.3% higher than the prior year, as a result of the 4.2% increase in the production of Gerdau S.A. (2.6 million tons) and 86.7% in Açominas production (711 thousand tons). As to the latter, this improvement is mainly due to the increase in Gerdau s ownership interest from 21.8% to 36.6% in comparing both periods. In the line of rolled steel products, 2.5 million tons (+5.7%) were produced, of which 98% by Gerdau S.A. and 2% by Açominas. For the subsidiaries abroad, production totaled 2 million tons of crude steel and 1.9 million tons of rolled steel, representing an evolution of 281.4% and 258.5%, respectively. In North America, due to AmeriSteel s consolidation, the production of crude steel and rolled steel reached 1.8 million tons (+351.3%) and 1.7 million tons (+357.2%), respectively. Regardless of AmeriSteel, there was an increase of 12.3% for steel and 10% for rolled steel products. In South America, companies based in Argentina, Chile and Uruguay produced 184.2 thousand tons of crude steel, 51.4% higher than in 1999, and 222.6 thousand tons of rolled steel products, 35.9% above the prior year. This increase occurred because Gerdau Aza, in Chile, is operating closer to its new installed capacity, which was started up in 1999. Page 10

QUARTERLY INFORMATION - ITR Date 09.30.2000 Corporate Law 04.01 NOTES Production (1,000 ton) Crude Steel - In Brazil - Abroad - Total Rolled Steel - In Brazil - Abroad - Total 9 Months 2000 3,274 1,993 5,267 2,492 1,912 4,404 9 Months 1999 2,840 523 3,363 2,358 533 2,891 9 Months/00 Vs. 9 Months/99 (%) + 15.3 + 281.4 + 56.6 + 5.7 + 258.5 + 52.3 SALES In consolidated terms, Gerdau s sales reached 5.4 million tons in the first nine months of this year, i.e. 56.4% higher than in the same period of 1999. The improvement of operations in Brazil, the consolidation of AmeriSteel (United States) and increase in the ownership interest in the companies Sipar (Argentina) and Açominas were the main reasons for this result. The higher volume in sales to the industrial sector and the good performance of civil construction, together with the increase in exports for the period were positively reflected in Gerdau s operations in Brazil. 2.7 million tons were sold to domestic customers: 95.2% by Gerdau S.A. and 4.8% by Açominas. Shipments to foreign countries reached 730 thousand tons, of which 45.2% by Gerdau S.A. and 54.8% by Açominas, resulting in a revenue of US$ 163.4 million. Comparatively to the period from January to September 1999, domestic sales increased by 12.9% and exports by 46.5%. The companies abroad sold 2 million tons of steel products, a volume 242.4% higher than that of 1999. North America units sold 1.7 million tons, 360.9% above the prior year, what is principally explained by AmeriSteel s consolidation since October 1999. In Gerdau s companies in South America, except Brazil, sales totaled 253.3 thousand tons, corresponding to an increase of 24% as compared to 1999. Page 11

QUARTERLY INFORMATION - ITR Date 09.30.2000 Corporate Law 04.01 NOTES RESULTS Consolidated revenue reached R$ 4.6 billion up to September 2000, 78.4% above the same period of 1999. The strong demand of the Brazilian market, where Gerdau obtained a revenue of R$ 3 billion, and the expansion of operations abroad, mainly in North America, were the main boosters of this growth. Consolidated net revenue of R$ 3.8 billion presented an even higher evolution, topping by 85.3% that of the nine-month period of 1999. Gross margin came up to 26.2%, and remained relatively stable during the nine months of the current year. Gross profit increased from R$ 708.9 million in 1999 to R$ 1.0 billion in 2000. EBITDA (earnings before interest, taxes, depreciation and amortization) increased by 47.8%, totaling R$ 798.8 million, resulting in a margin of 20.8%. The lower margins in operations abroad, especially in the United States, as compared to the Brazilian business, caused the lower growth of EBITDA in relation to net revenue for the period. Net income accumulated for the year reached R$ 312.54 million, i.e., 11.2% above the R$ 281.1 million obtained in 1999. Comparing the first three quarters of 2000, it can be noted that the income remained practically unchanged (slightly above R$ 100 million for each period), showing that the Company was able to overcome the adversities in the foreign market, principally the pressure on prices in the United States and the crisis in Argentina. From January through September, Gerdau s business generated a net cash from operating activity of R$ 429.9 million, representing 11.2% of net revenue. Only in the third quarter, cash generation was R$ 237.3 million, above the accumulated from January to June (R$ 192.6 million), mainly due to the reduction in working capital for the third quarter. Page 12

QUARTERLY INFORMATION - ITR Date 09.30.2000 Corporate Law 04.01 NOTES CONSOLIDATED CASH FLOW January to September (per Corporate Law in thousands of Brazilian reais) 2000 1999 Net income 312,519 281,139 Income and social contribution 61,323 (8,859) taxes Depreciation and amortization 247,491 119,493 Interest and non-cash monetary (34,526) 181,748 variations Change in working capital (156,905) (143,627) Net cash from operating 429,902 429,894 activity Purchase/disposal of property, (278,231) (389,032) plant and equipment Increase in deferred charges - (1,872) Purchase /disposal of (104,555) (571,569) investments Use of cash in investments (382,786) (962,473) Working capital financing (95,649) 111,581 Long-term funding 588,076 820,335 Amortization of long-term (502,861) (218,499) financing Treasury stock - 6,152 Payment of dividends/interest and profit sharing (107,744) (67,402) Net cash from financing (118,178) 652,167 activity Change in cash balance (71,062) 119,588 Cash balance Beginning of period 694,863 421,861 End of period 623,801 541,449 INVESTMENTS On September 14, two new Gerdau s industrial units were inaugurated in Simões Filho, Bahia, where US$ 1.5 million was invested in the construction of a truss plant (used in reinforced concrete structures which substitute premolded slabs) and US$ 2.5 million in the Armafer center of steel cut and fold for civil construction. The funds invested in these two factories, as well as improvement and technological updating of other plants in Brazil and abroad, amounted to US$ 61.4 million for the quarter. In the accumulated for the year, US$ 174.8 million was invested in property, plant and equipment, of which US$ 126 million by Gerdau companies in Brazil (US$ 100.3 million by Gerdau S.A.) and US$ 48.8 million by units abroad. Page 13

QUARTERLY INFORMATION - ITR Date 09.30.2000 Corporate Law 04.01 NOTES As a recent event, in accordance with the purchase agreement entered into by Gerdau and Kyoei Steel Ltd. in September 1999, Gerdau purchased the remaining 12% of FLS Holdings Inc. held by Kyoei, and, therefore, increased its stake in AmeriSteel from 75% to 85%. The transaction amount was R$ 35.6 million, paid at sight, corresponding to the same US$ 33 per share of the initial purchase. INDEBTEDNESS The consolidated net debt has been stable at about US$ 1.3 billion (US$ 1.7 billion of gross debt less US$ 338 million of cash and temporary cash investments). However, Gerdau s increased international exposure since the acquisition of AmeriSteel has allowed extending the debt profile and reducing its cost, currently about 14% for indebtedness in local currency and average interest of 8% per year for the indebtedness in dollar. Due to this internationalization, approximately 70% of the gross debt are denominated in U.S. dollar and the remaining 30% are basically loans from BNDES (National Economic and Social Development Bank) and debentures, the funding rates of which have decreased. Considering the reduction of the TJLP (Brazilian Long-Term Interest Rate), which is the principal indexing unit of the major part of national debt, from 10.25% to 9.75% as from October, the last three months of the year should follow the same trend. As the indebtedness, a major part of temporary cash investments is denominated in foreign currency. Of a total of US$ 338 million recorded in September, US$ 212 million was denominated in dollar. CAPITAL MARKET In continuity to the policy of full disclosure and relationship with the capital market, Gerdau will promote, on November 13, 2000, at 4:30 p.m., a Brazilian Association of Capital Market Analysts (ABAMEC) national meeting, at the auditorium of the Renaissance São Paulo Hotel, in São Paulo, to present its performance in the first nine months of 2000. This is the second meeting scheduled by Gerdau this year. The first one was held on May 16, with the presence of over 400 persons. In the first nine months of 2000, the shares issued by Gerdau presented a significant improvement in liquidity on Brazilian stock exchanges. This can be noted by the inclusion of Gerdau S.A. shares in the IBOVESPA as from September. 23,444 transactions were conducted and 24.3 billion securities were traded, involving R$ 807.1 Page 14

QUARTERLY INFORMATION - ITR Date 09.30.2000 Corporate Law 04.01 NOTES million. Compared to the previous year, these operations represent an increase of 88.6% in the number of transactions, 74.8% in the number of shares and 118.1% in the funds moved. 4.5 billion shares of Metalúrgica Gerdau S.A. and 19.8 billion of shares of Gerdau S.A. were traded in this period, involving 5,079 and 18,365 transactions, respectively. On the New York Stock Exchange (NYSE), 2.4 million of Gerdau s American Depositary Receipts (ADRs) was traded, representing 2.4 billion of preferred shares, with a daily trading on that stock exchange. Page 15

01.01 - IDENTIFICATION 1 CVM CODE 2 REGISTERED NAME 3 CGC General Taxpayers Registration 09.01 INVESTMENTS IN SUBSIDIARIES AND/OR AFFILIATED COMPANIES 1 - ITEM 2 NAME OF THE SUBSIDIARY/AFFILIATED COMPANY 3 CGC General Taxpayers Registration 4 CLASSIFICATION 5 INTEREST IN THE INVESTEE - % 6 NET ASSETS OF THE INVESTOR - % 7 - TYPE OF COMPANY 8 NUMBER OF SHARES HELD IN THE CURRENT QUARTER (THOUSAND) 9 NUMBER OF SHARES HELD IN THE PREVIOUS QUARTER (THOUSAND) 01 GERDAU INTERN. EMPREEND. LTDA. 87.040.598/0001-20 CLOSELY-HELD AFFILIATED 75.03 30.53 COMPANY 251,959 251,959 02 ITAGUAÍ COMÉRCIO, IMPORT. E EXPORT. LTDA 31.330.020/0001-54 CLOSELY-HELD AFFILIATED 99.99 11.68 COMPANY 234,999 234,999 03 GERDAU PARTICIPAÇÕES LTDA. 02.186.673/0001-03 CLOSELY-HELD AFFILIATED 95,81 21.51 COMPANY 403,700 252,999 Page 16

16.01 OTHER INFORMATION THE COMPANY CONSIDERS RELEVANT 1 ITEM 01 2 ORDER NUMBER 03 3 CVM REGISTRATION NUMBER DCA-82/018 4 CVM REGISTRATION DATE 07.29.1982 5 ISSUED SERIES A 6 TYPE OF ISSUANCE SIMPLE 7 NATURE OF ISSUANCE PUBLIC 8 DATE OF ISSUANCE 06.01.1982 9 MATURITY DATE 06.01.2011 10 TYPE OF DEBENTURE WITHOUT PREFERENCE 11 CONDITION OF REMUNERATION IN EFFECT 98% OF CDI 12 PREMIUM/DISCOUNT 13 PAR VALUE (reais) 332.04 14 ISSUED AMOUNT (thousands of reais) 7,968 15 NUMBER OF ISSUED BONDS (UNIT) 24,000 16 OUTSTANDING BONDS (UNIT) 15,282 17 TREASURY BONDS (UNIT) 8,718 18 REDEEMED BONDS (UNIT) 0 19 CONVERTED BONDS (UNIT) 0 20 BONDS TO BE PLACED (UNIT) 0 21 DATE OF THE LAST RENEGOTIATION 10.01.2000 22 DATE OF THE NEXT EVENT 02.01.2001 Page 28

16.01 OTHER INFORMATION THE COMPANY CONSIDERS RELEVANT 1 ITEM 02 2 ORDER NUMBER 03 3 CVM REGISTRATION NUMBER DCA-82/019 4 CVM REGISTRATION DATE 08.11.1982 5 ISSUED SERIES B 6 - TYPE OF ISSUANCE SIMPLE 7 NATURE OF ISSUANCE PUBLIC 8 - DATE OF ISSUANCE 06.01.1982 9 MATURITY DATE 06.01.2011 10 TYPE OF DEBENTURE WITHOUT PREFERENCE 11 CONDITION OF REMUNERATION IN EFFECT 98% OF CDI 12 PREMIUM/DISCOUNT 13 PAR VALUE (reais) 332.04 14 ISSUED AMOUNT (thousands of reais) 7,968 15 NUMBER OF ISSUED BONDS (UNIT) 24,000 16 OUTSTANDING BONDS (UNIT) 8,050 17 TREASURY BONDS (UNIT) 15,950 18 REDEEMED BONDS (UNIT) 0 19 CONVERTED BONDS (UNIT) 0 20 BONDS TO BE PLACED (UNIT) 0 21 DATE OF THE LAST RENEGOTIATION 10.01.2000 22 DATE OF THE NEXT EVENT 02.01.2001 Page 29

16.01 OTHER INFORMATION THE COMPANY CONSIDERS RELEVANT 1 ITEM 03 2 ORDER NUMBER 04 3 CVM REGISTRATION NUMBER DCA-83/043 4 CVM REGISTRATION DATE 08.08.1983 5 ISSUED SERIES 1 6 - TYPE OF ISSUANCE SIMPLE 7 NATURE OF ISSUANCE PUBLIC 8 - DATE OF ISSUANCE 05.31.1983 9 MATURITY DATE 02.28.2012 10 TYPE OF DEBENTURE WITHOUT PREFERENCE 11 CONDITION OF REMUNERATION IN EFFECT 98% OF CDI 12 PREMIUM/DISCOUNT 13 PAR VALUE (reais) 332.04 14 ISSUED AMOUNT (thousands of reais) 13,945 15 NUMBER OF ISSUED BONDS (UNIT) 42,000 16 OUTSTANDING BONDS (UNIT) 0 17 TREASURY BONDS (UNIT) 42,000 18 REDEEMED BONDS (UNIT) 0 19 CONVERTED BONDS (UNIT) 0 20 BONDS TO BE PLACED (UNIT) 0 21 DATE OF THE LAST RENEGOTIATION 10.01.2000 22 DATE OF THE NEXT EVENT 02.01.2001 Page 30

16.01 OTHER INFORMATION THE COMPANY CONSIDERS RELEVANT 1 ITEM 04 2 ORDER NUMBER 05 3 CVM REGISTRATION NUMBER 4 CVM REGISTRATION DATE 5 ISSUED SERIES 1 6 - TYPE OF ISSUANCE CONVERTIBLE 7 NATURE OF ISSUANCE PRIVATE 8 - DATE OF ISSUANCE 11.05.1989 9 MATURITY DATE 12.05.2005 10 TYPE OF DEBENTURE WITHOUT PREFERENCE 11 CONDITION OF REMUNERATION IN EFFECT REFERENTIAL RATE TR + 8% P.A. 12 PREMIUM/DISCOUNT 13 PAR VALUE (reais) 798.50 14 ISSUED AMOUNT (thousands of reais) 36,905 15 NUMBER OF ISSUED BONDS (UNIT) 46,218 16 OUTSTANDING BONDS (UNIT) 29,986 17 TREASURY BONDS (UNIT) 0 18 REDEEMED BONDS (UNIT) 16,232 19 CONVERTED BONDS (UNIT) 0 20 BONDS TO BE PLACED (UNIT) 0 21 DATE OF THE LAST RENEGOTIATION 10.05.2000 22 DATE OF THE NEXT EVENT 11.01.2000 Page 31

16.01 OTHER INFORMATION THE COMPANY CONSIDERS RELEVANT 1 ITEM 05 2 ORDER NUMBER 7 3 CVM REGISTRATION NUMBER DCA-82/024 4 CVM REGISTRATION DATE 02.28.1982 5 ISSUED SERIES 1 6 - TYPE OF ISSUANCE SIMPLE 7 NATURE OF ISSUANCE PUBLIC 8 - DATE OF ISSUANCE 07.01.1982 9 MATURITY DATE 07.01.2012 10 TYPE OF DEBENTURE WITHOUT PREFERENCE 11 CONDITION OF REMUNERATION IN EFFECT 98% OF CDI 12 PREMIUM/DISCOUNT 13 PAR VALUE (reais) 332.04 14 ISSUED AMOUNT (thousands of reais) 7,570 15 NUMBER OF ISSUED BONDS (UNIT) 22,800 16 OUTSTANDING BONDS (UNIT) 901 17 TREASURY BONDS (UNIT) 21,899 18 REDEEMED BONDS (UNIT) 0 19 CONVERTED BONDS (UNIT) 0 20 BONDS TO BE PLACED (UNIT) 0 21 DATE OF THE LAST RENEGOTIATION 10.01.2000 22 DATE OF THE NEXT EVENT 02.01.2001 Page 32

16.01 OTHER INFORMATION THE COMPANY CONSIDERS RELEVANT 1 ITEM 06 2 ORDER NUMBER 8 3 CVM REGISTRATION NUMBER DCA-82/004 4 CVM REGISTRATION DATE 12.23.1982 5 ISSUED SERIES 1 6 - TYPE OF ISSUANCE SIMPLE 7 NATURE OF ISSUANCE PUBLIC 8 - DATE OF ISSUANCE 11.01.1982 9 MATURITY DATE 05.02.2013 10 TYPE OF DEBENTURE WITHOUT PREFERENCE 11 CONDITION OF REMUNERATION IN EFFECT 98% OF CDI 12 PREMIUM/DISCOUNT 13 PAR VALUE (reais) 332.04 14 ISSUED AMOUNT (thousands of reais) 19,922 15 NUMBER OF ISSUED BONDS (UNIT) 60,000 16 OUTSTANDING BONDS (UNIT) 30,797 17 TREASURY BONDS (UNIT) 29,191 18 REDEEMED BONDS (UNIT) 0 19 CONVERTED BONDS (UNIT) 12 20 BONDS TO BE PLACED (UNIT) 0 21 DATE OF THE LAST RENEGOTIATION 10.01.2000 22 DATE OF THE NEXT EVENT 02.01.2001 Page 33

16.01 OTHER INFORMATION THE COMPANY CONSIDERS RELEVANT 1 ITEM 07 2 ORDER NUMBER 9 3 CVM REGISTRATION NUMBER DCA-83/044 4 CVM REGISTRATION DATE 08.08.1983 5 ISSUED SERIES 1 6 - TYPE OF ISSUANCE SIMPLE 7 NATURE OF ISSUANCE PUBLIC 8 - DATE OF ISSUANCE 05.01.1983 9 MATURITY DATE 09.01.2014 10 TYPE OF DEBENTURE WITHOUT PREFERENCE 11 CONDITION OF REMUNERATION IN EFFECT 98% OF CDI 12 PREMIUM/DISCOUNT 13 PAR VALUE (reais) 332.04 14 ISSUED AMOUNT (thousands of reais) 13,945 15 NUMBER OF ISSUED BONDS (UNIT) 42,000 16 OUTSTANDING BONDS (UNIT) 31,398 17 TREASURY BONDS (UNIT) 10,482 18 REDEEMED BONDS (UNIT) 111 19 CONVERTED BONDS (UNIT) 9 20 BONDS TO BE PLACED (UNIT) 0 21 DATE OF THE LAST RENEGOTIATION 10.01.2000 22 DATE OF THE NEXT EVENT 02.01.2001 Page 34

16.01 OTHER INFORMATION THE COMPANY CONSIDERS RELEVANT 1 ITEM 08 2 ORDER NUMBER 10 3 CVM REGISTRATION NUMBER DEB-81/017 4 CVM REGISTRATION DATE 05.07.1981 5 ISSUED SERIES 1 6 - TYPE OF ISSUANCE SIMPLE 7 NATURE OF ISSUANCE PUBLIC 8 - DATE OF ISSUANCE 02.27.1981 9 MATURITY DATE 11.30.2015 10 TYPE OF DEBENTURE SUBORDINATED 11 CONDITION OF REMUNERATION IN EFFECT 12 PREMIUM/DISCOUNT 13 PAR VALUE (reais) 996.13 14 ISSUED AMOUNT (thousands of reais) 6,425 15 NUMBER OF ISSUED BONDS (UNIT) 6,450 16 OUTSTANDING BONDS (UNIT) 0 17 TREASURY BONDS (UNIT) 6,450 18 REDEEMED BONDS (UNIT) 0 19 CONVERTED BONDS (UNIT) 0 20 BONDS TO BE PLACED (UNIT) 0 21 DATE OF THE LAST RENEGOTIATION 09.30.1992 22 DATE OF THE NEXT EVENT 11.30.2015 Page 35

16.01 OTHER INFORMATION THE COMPANY CONSIDERS RELEVANT 1 ITEM 09 2 ORDER NUMBER 11 3 CVM REGISTRATION NUMBER DEB-90/041 4 CVM REGISTRATION DATE 09.03.1990 5 ISSUED SERIES A 6 - TYPE OF ISSUANCE SIMPLE 7 NATURE OF ISSUANCE PUBLIC 8 - DATE OF ISSUANCE 06.01.1990 9 MATURITY DATE 06.01.2020 10 TYPE OF DEBENTURE WITHOUT PREFERENCE 11 CONDITION OF REMUNERATION IN EFFECT 98% OF CDI 12 PREMIUM/DISCOUNT 13 PAR VALUE (reais) 1,253 14 ISSUED AMOUNT (thousands of reais) 31,325 15 NUMBER OF ISSUED BONDS (UNIT) 25,000 16 OUTSTANDING BONDS (UNIT) 3,179 17 TREASURY BONDS (UNIT) 21,821 18 REDEEMED BONDS (UNIT) 0 19 CONVERTED BONDS (UNIT) 0 20 BONDS TO BE PLACED (UNIT) 0 21 DATE OF THE LAST RENEGOTIATION 10.01.2000 22 DATE OF THE NEXT EVENT 02.01.2001 Page 36

16.01 OTHER INFORMATION THE COMPANY CONSIDERS RELEVANT 1 ITEM 10 2 ORDER NUMBER 11 3 CVM REGISTRATION NUMBER DEB-91/004 4 CVM REGISTRATION DATE 01.08.1991 5 ISSUED SERIES B 6 - TYPE OF ISSUANCE CONVERTIBLE 7 NATURE OF ISSUANCE PUBLIC 8 - DATE OF ISSUANCE 06.01.1990 9 MATURITY DATE 06.01.2020 10 TYPE OF DEBENTURE WITHOUT PREFERENCE 11 CONDITION OF REMUNERATION IN EFFECT 98% OF CDI 12 PREMIUM/DISCOUNT 13 PAR VALUE (reais) 1,253 14 ISSUED AMOUNT (thousands of reais) 31,325 15 NUMBER OF ISSUED BONDS (UNIT) 25,000 16 OUTSTANDING BONDS (UNIT) 5,557 17 TREASURY BONDS (UNIT) 19,443 18 REDEEMED BONDS (UNIT) 0 19 CONVERTED BONDS (UNIT) 0 20 BONDS TO BE PLACED (UNIT) 0 21 DATE OF THE LAST RENEGOTIATION 10.01.2000 22 DATE OF THE NEXT EVENT 02.01.2001 Page 37

16.01 OTHER INFORMATION THE COMPANY CONSIDERS RELEVANT We present below the assets, liabilities and income and expenses of Consolidated Gerdau S.A. following the same accounting practices as those adopted by the Company: CONSOLIDATED BALANCE SHEETS ASSETS CORPORATE LAW In thousands of reais CURRENT ASSETS 09.30.00 06.30.00 Cash and cash equivalents and temporary cash investments 623,801 522,305 Trade accounts receivable 722,181 685,607 Inventories 953,591 961,484 Advances to employees 21,609 27,307 Recoverable taxes 27,225 24,240 Deferred income and social contribution taxes 25,646 22,303 Other receivables 60,506 Total current assets 2,434,559 2,301,776 NONCURRENT ASSETS Related companies 32,465 - Debtors under contract 9,618 9,422 Eletrobrás loans 16,776 16,776 Deferred income and social contribution taxes 44,363 43,040 Compulsory deposits and other 99,859 Total noncurrent assets 203,081 172,009 PERMANENT ASSETS Investments 266,303 239,876 Property, plant and equipment 3,776,584 3,686,478 Deferred charges 23,158 Total permanent assets 4,066,045 3,950,075 Total assets 6,703,685 6,423,86 Page 38

16.01 OTHER INFORMATION THE COMPANY CONSIDERS RELEVANT CONSOLIDATED BALANCE SHEETS LIABILITIES AND STOCKHOLDERS EQUITY CORPORATE LAW In thousands of reais CURRENT LIABILITIES 09.30.00 06.30.00 Trade accounts payable 299,068 280,123 Local and foreign loans 1,263,368 1,345,536 Debentures 4,603 4,538 Taxes and contributions 71,614 67,728 Deferred income and social contribution taxes 9,275 8,128 Salaries payable 79,406 87,626 Creditors under contract 14,838 13,599 Dividends proposed/interest on capital 33,947 40,312 Other payables 127,467 103,788 Total current liabilities 1,903,586 1,951,378 LONG-TERM LIABILITIES Local and foreign loans 1,549,506 1,328,076 Related companies - 30,311 Debentures 245,117 157,500 Reserve for contingencies 169,875 164,509 Deferred income and social contribution taxes 264,666 254,058 Other payables 149,697 151,105 Total long-term liabilities 2,378,861 2,085,559 DEFERRED INCOME 13,061 26,123 MINORITY INTEREST 94,995 116,956 STOCKHOLDERS EQUITY Capital 1,320,133 1,320,133 Capital reserve 211,926 204,473 Income reserve 556,116 556,116 Retained earnings 225,007 163,122 Total stockholders equity 2,313,182 2,243,844 STOCKHOLDERS EQUITY including minority interest 2,408,177 2,360,800 Total liabilities and STOCKHOLDERS EQUITY 6,703,685 6,423,860 Page 39

16.01 OTHER INFORMATION THE COMPANY CONSIDERS RELEVANT CONSOLIDATED STATEMENTS OF INCOME CORPORATE LAW In thousands of reais 09.30.00 09.30.99 Gross revenue 4,599,622 2,577,641 Taxes on sales (577,157) (413,206) Freights and discounts (189,664) (95,996) Net revenue 3,832,801 2,068,439 Cost of sales (2,830,144) (1,359,558) Gross profit 1,002,657 708,881 Selling expenses (158,812) (94,956) Financial expenses (324,151) (486,229) Financial income 94,161 102,533 General and administrative expenses (292,547) (193,076) Equity in earnings of subsidiaries and affiliated companies 20,390 238,168 Other operating income 43,384 4,497 Income from operations 385,082 279,818 Nonoperating income (expenses) (5,780) (4,128) Management s profit sharing (5,460) (3,410) Income before taxes 373,842 272,280 Provision for income and social contribution taxes (61,323) 8,859 Net income 312,519 281,139 Interest of majority stockholders 307,603 280,007 Minority interest 4,916 1,132 Page 40

17.01 REPORT ON SPECIAL REVIEW - UNQUALIFIED To the Management and Shareholders of Gerdau S.A.: Report on Special Review (1) We have performed a special review of the quarterly information ITR of GERDAU S.A. (a Brazilian corporation) which includes the balance sheet as of September 30, 2000, the statement of income for the quarter and the nine-month period then ended, the performance report and relevant information. (2) Our review was conducted in accordance with specific standards established by the Brazilian Institute of Accountants - IBRACON, together with the Federal Accounting Council, and consisted principally of: (a) inquiries of and discussions with management personnel responsible for the accounting, financial and operating areas as to the principal criteria adopted in the preparation of the quarterly information, and (b) review of the information and subsequent events that have or might have significant effects on the financial position and operations of the Company. (3) Based on our special review, we are not aware of any significant change that should be made to the quarterly information referred to above for it to be in conformity with accounting practices emanating from corporate law in Brazil, and with standards established by the Brazilian Securities Commission - CVM, specifically applicable to the preparation of such quarterly information. (4) We had previously audited the balance sheet as of June 30, 2000, presented for comparative purposes, and our report thereon, dated July 21, 2000, was issued without qualification. The statement of income for the quarter and the nine-month period ended September 30, 1999, presented for comparative purposes, had also been previously audited by us and our report thereon, dated October 26, 1999, was issued without qualification. Porto Alegre, October 20, 2000 ARTHUR ANDERSEN S/C Carlos Biedermann Engagement Partner Page 31

01.01. IDENTIFICATION 1. CVM CODE 00398-0 2. REGISTERED NAME GERDAU S.A. 3. CGC General Taxpayers Registration 33.611.500/0001-19 SUBSIDIARY/AFFILIATED COMPANY REGISTERED NAME GERDAU INTERN. EMPREEND. LTDA. 18.01 STATEMENTS OF INCOME OF SUBSIDIARY/AFFILIATED COMPANY (Thousands of reais) 1. CODE 2. DESCRIPTION 3. 07.01.2000 to 09.30.2000 4. 01.01.2000 to 09.30.2000 5. 07.01.1999 to 09.30.1999 6. 01.01.1999 to 09.30.1999 3.01 Gross revenue 0 0 0 0 3.02 Deductions from gross revenue 0 0 0 0 3.03 Net revenue 0 0 0 0 3.04 Cost of products and/or services 0 0 0 0 3.05 Gross profit 0 0 0 0 3.06 Operating expenses/income 12,797 50,947 94,314 306,244 3.06.01 Selling 0 0 0 0 3.06.02 General and administrative (19) (35) (121) (182) 3.06.03 Financial 529 1,043 313 177 3.06.03.01 Financial income 529 1,044 320 358 3.06.03.02 Financial expenses 0 (1) (7) (181) 3.06.04 Other operating income 0 0 0 0 3.06.05 Other operating expenses 0 0 0 0 3.06.06 Equity in earnings of subsidiaries and affiliated companies 12,287 49,939 94,122 306,249 3.07 Income from operations 12,797 50,947 94,314 306,244 3.08 Nonoperating income (expenses) 0 0 0 0 3.08.01 Income 0 0 0 0 3.08.02 Expenses 0 0 0 0 3.09 Income before taxes/management s profit sharing 12,797 50,947 94,314 306,244 3.10 Provision for income and social contribution taxes (115) (222) 0 0 3.11 Deferred income tax 0 0 0 0 3.12 Management s profit sharing /statutory contributions 0 0 0 0 3.12.01 Management s profit sharing 0 0 0 0 3.12.02 Contributions 0 0 0 0 3.13 Reversal of interest on capital 0 0 0 0 3.15 Net income/loss 12,682 50,725 94,314 306,244 NUMBER OF SHARES, FORMERLY TREASURY STOCK (thousand) 335,795 335,795 335,795 335,795 EARNINGS PER SHARE 0.03777 0.15106 0.28087 0.91200 LOSS PER SHARE Page 32

01.01. IDENTIFICATION In accordance with the articles of incorporation, the Company s corporate purpose is the administration of and participation in industrial, commercial and service activities, and its revenue is basically from ownership interest in Gerdau companies in Brazil and abroad. In the period from January to September 2000, equity in income of subsidiaries and affiliated companies was R$49.9 million, and net income was R$50.7 million.

01.01. IDENTIFICATION 1. CVM CODE 00398-0 2. REGISTERED NAME GERDAU S.A. 3. CGC General Taxpayers Registration 33.611.500/0001-19 SUBSIDIARY/AFFILIATED COMPANY REGISTERED NAME ITAGUAÍ COMÉRCIO, IMPORT. E EXPORT. LTDA 18.01 STATEMENTS OF INCOME OF SUBSIDIARY/AFFILIATED COMPANY (Thousands of reais) 1. CODE 2. DESCRIPTION 3. 07.01.2000 to 09.30.2000 4. 01.01.2000 to 09.30.2000 5. 07.01.1999 to 09.30.1999 6. 01.01.1999 to 09.30.1999 3.01 Gross revenue 0 0 0 0 3.02 Deductions from gross revenue 0 0 0 0 3.03 Net revenue 0 0 0 0 3.04 Cost of products and/or services 0 0 0 0 3.05 Gross profit 0 0 0 0 3.06 Operating expenses/income 5,318 17,175 24,423 (4,979) 3.06.01 Selling 0 0 0 0 3.06.02 General and administrative (35) (51) (8) (34) 3.06.03 Financial 945 1,881 (119) (67) 3.06.03.01 Financial income 945 1,884 1 521 3.06.03.02 Financial expenses 0 (3) (120) (588) 3.06.04 Other operating income 0 0 0 0 3.06.05 Other operating expenses 0 0 0 0 3.06.06 Equity in earnings of subsidiaries and affiliated companies 4,408 15,345 24,550 (4,878) 3.07 Income from operations 5,318 17,175 24,423 (4,979) 3.08 Nonoperating income (expenses) 0 0 0 0 3.08.01 Income 0 0 0 0 3.08.02 Expenses 0 0 0 0 3.09 Income before taxes/management s profit sharing 5,318 17,175 24,423 (4,979) 3.10 Provision for income and social contribution taxes (244) (451) 42 38 3.11 Deferred income tax (59) (138) 0 0 3.12 Management s profit sharing /statutory contributions 0 0 0 0 3.12.01 Management s profit sharing 0 0 0 0 3.12.02 Contributions 0 0 0 0 3.13 Reversal of interest on capital 0 0 0 0 3.15 Net income/loss 5,015 16,586 24,465 (4,941) NUMBER OF SHARES, FORMERLY TREASURY STOCK (thousand) 235,000 235,000 235,000 235,000 EARNINGS PER SHARE 0.02134 0.07058 0.10411 LOSS PER SHARE (0.02103) Page 34

01.01. IDENTIFICATION In accordance with the articles of incorporation, the Company s corporate purpose is the administration of and participation in industrial, commercial and service activities, and its revenue is basically from ownership interest in Gerdau companies. In the period from January to September 2000, equity in results of subsidiaries and affiliated companies was R$15.3 million, and net income was R$16.6 million.

01.01 - IDENTIFICATION 1 CVM CODE 2 REGISTERED NAME 3 CGC General Taxpayers Registration 10.01 CHARACTERISTICS OF THE PUBLIC OR PRIVATE ISSUANCE OF DEBENTURES 1. CVM CODE 00398-0 2. REGISTERED NAME GERDAU S.A. 3. CGC General Taxpayers Registration 33.611.500/0001-19 SUBSIDIARY/AFFILIATED COMPANY REGISTERED NAME GERDAU PARTICIPAÇÕES LTDA 18.01 STATEMENTS OF INCOME OF SUBSIDIARY/AFFILIATED COMPANY (Thousands of reais) 1. CODE 2. DESCRIPTION 3. 07.01.2000 to 09.30.2000 4. 01.01.2000 to 09.30.2000 5. 07.01.1999 to 09.30.1999 6. 01.01.1999 to 09.30.1999 3.01 Gross revenue 0 0 0 0 3.02 Deductions from gross revenue 0 0 0 0 3.03 Net revenue 0 0 0 0 3.04 Cost of products and/or services 0 0 0 0 3.05 Gross profit 0 0 0 0 3.06 Operating expenses/income 35,094 107,426 1 (978) 3.06.01 Selling 0 0 0 0 3.06.02 General and administrative (1) (196) 0 (5) 3.06.03 Financial 29 (73) 1 (973) 3.06.03.01 Financial income 30 49 1 6 3.06.03.02 Financial expenses (1) (122) 0 (979) 3.06.04 Other operating income 0 0 0 0 3.06.05 Other operating expenses 0 0 0 0 3.06.06 Equity in earnings of subsidiaries and affiliated companies 35,066 107,695 0 0 3.07 Income from operations 35,094 107,426 1 (978) 3.08 Nonoperating income (expenses) 0 0 0 0 3.08.01 Income 0 0 0 0 3.08.02 Expenses 0 0 0 0 3.09 Income before taxes/management s profit sharing 35,094 107,426 1 (978) 3.10 Provision for income and social contribution taxes 0 0 0 0 3.11 Deferred income tax (4,085) (12,265) 0 125 3.12 Management s profit sharing /statutory contributions 0 0 0 0 3.12.01 Management s profit sharing 0 0 0 0 3.12.02 Contributions 0 0 0 0 3.13 Reversal of interest on capital 0 0 0 0 3.15 Net income/loss 31,009 95,161 1 (853) NUMBER OF SHARES, FORMERLY TREASURY STOCK (thousand) 421,362 421,362 253,000 253,000 Page 19

01.01 - IDENTIFICATION 1 CVM CODE 2 REGISTERED NAME 3 CGC General Taxpayers Registration 10.01 CHARACTERISTICS OF THE PUBLIC OR PRIVATE ISSUANCE OF DEBENTURES EARNINGS PER SHARE 0.07359 0.22584 0 0 LOSS PER SHARE (0.00337) Page 20

01.01 - IDENTIFICATION 1 CVM CODE 2 REGISTERED NAME 3 CGC General Taxpayers Registration 10.01 CHARACTERISTICS OF THE PUBLIC OR PRIVATE ISSUANCE OF DEBENTURES In accordance with the articles of incorporation, the Company s corporate purpose is the administration of and participation in industrial, commercial and service activities, and its revenue is basically from ownership interest in Gerdau companies. In the period from January to September 2000, equity in results of subsidiaries and affiliated companies was R$107.7 million, and net income was R$ 95.2 million. Page 18